INSTRUCTIONALWORKBOOK 

FOR PREPARING THE 

“TREASURY REPORT ON 

RECEIVABLES AND DEBT 

COLLECTION ACTIVITIES”

A Supplement to the Treasury Financial Manual 

Volume I-Part 2-Chapter 4100

Department of the Treasury 

Bureau of the Fiscal Service 

Debt Management Services 

Issue Date-September 2005

Updated-January 2016
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TABLE OF CONTENTS

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INTRODUCTION

Purpose ............................................................................................................................. 1

Background ..................................................................................................................... 1 

Authority .......................................................................................................................... 2 

Changes to the Report and Instructions....................................................................... 2 

The Structure of the Report and Reporting Requirements ......................................... 3 

General ..................................................................................................................... 3

Reporting Frequency ............................................................................................ 4 

Reporting Mechanism ........................................................................................... 4 

Certification/Verification..................................................................................... 4 

Inquiries ................................................................................................................... 5

INSTRUCTIONS

Form Identification & Preparer Information .............................................................. 7 

Form Identification ................................................................................................. 8 

Preparer Information .............................................................................................. 9 

TROR Part I: Status of Receivables .......................................................................... 10 

Section A: Receivables and Collections ............................................................. 11 

General ......................................................................................................... 12 

By Line ........................................................................................................... 12 

Section B: Additional Receivables Data (Information Only).....................17 

General ......................................................................................................... 18 

By Line ........................................................................................................... 18 

Section C: Delinquent Debt (Excluding CNC Debts)......................... ...... 20 

General ......................................................................................................... 21 

By Line ........................................................................................................... 23 

TROR Part II: Debt Management Tool and Technique Performance Data .......... 25 

Section A: Delinquent Debt 120 Days or Less ..................................................... 26 

General ......................................................................................................... 27 

By Line ........................................................................................................... 27 

Section B: Delinquent Debt Eligible For Referral to Treasury....................31 

General ......................................................................................................... 32 

By Line ........................................................................................................... 34 

Section C: Collections on Delinquent Debt ....................................................... 41 

General ......................................................................................................... 42 

By Line ........................................................................................................... 43 
TABLE OF CONTENTS

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Section D: CNC Debt Status ................................................................................ 45 

General ......................................................................................................... 46 

By Line ........................................................................................................... 46 

Section E: Disposition of Closed-Out Debts ...................................................... 48 

General ......................................................................................................... 49 

By Line ........................................................................................................... 49 

Part III: Footnotes .......................................................................................................... 51 

Glossary ...................................................................................................... 52 
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1

Purpose 

This document presents the form and instructions for the 

preparation and submission of the Treasury Report on Receivables 

and Debt Collection Activities (formerly known as the Report on 

Receivables Due from the Public), as revised effective January 

2016. This report is the Department of the Treasury’s (Treasury) 

only comprehensive means for periodically collecting data on the 

status and condition of the Federal Government’s non-tax debt 

portfolio, in accordance with the requirements of the Debt 

Collection Act of 1982, Debt Collection Improvement Act of 1996 

(DCIA) and the Digital Accountability and Transparency Act of 

2014. 

The information contained in the Treasury Report on 

Receivables and Debt Collection Activities (the Receivables 

Report or TROR) is disseminated to the Congress, the Office of 

Management and Budget (OMB), agency Chief Financial 

Officers, other officials and representatives of Federal and state 

organizations, private sector organizations, and the public. 

Background 

Treasury has been collecting data on the status of the 

Government’s debt portfolio since the early 1980's. This 

Instructional Workbook was last revised in June 2008. This 

version of the Receivables Report is a minor revision of the 

report, which was last fully revised in the second quarter of 

Fiscal Year (FY) 1999. The Bureau of the Fiscal Service (Fiscal 

Service) has revised the report to make it easier to prepare and 

provide better information on the status of government-wide 

receivables and debt collection. 

The TROR serves as a management report that informs Federal 

decision makers of the gross book value of the receivables owed to 

Federal agencies and the status of the Federal Government’s debt 

portfolio. The numbers provided in the TROR shall be 

reconcilable with the agency’s financial statements, 

notwithstanding that the financial statements may reflect net 

present value in accordance with Credit Reform guidance.1 

1 See the Glossary on page 52 at the end of this document for the definition of the terms used in these instructions. 
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 Authority 

Treasury is authorized to require agencies to report the information 

requested on the TROR pursuant to 31 U.S.C. § 3719. This 

workbook is a supplement to the Chapter 2-4100 of Volume I of 

the Treasury Financial Manual (TFM) (Volume I, TFM 2-4100), 

which implements the statutory authority. The Fiscal Service 

formerly known as the Financial Management Service (FMS), is the 

bureau of the Treasury with delegated authority to carry out 

Treasury’s government-wide debt collection responsibilities. 

Changes to the Report and Instructions 

The Digital Accountability and Transparency Act (DATA Act) 

was signed into law on May 9, 2014. It requires (1) Federal 

agencies to refer to the Treasury Offset Program (TOP) legally 

enforceable non-tax debts that are greater than 120 days 

delinquent; and (2) the Secretary of the Treasury to report to 

Congress “any instance" in which agencies fail to meet the new 

referral requirement. The purpose of this revision of the 

Receivables Report and the TROR Instructional Workbook is to 

make changes that will enable agencies to submit data to Treasury 

that captures information on DATA Act compliance, and to report 

data of greater relevancy to Congress, OMB, and the Chief 

Financial Officers Counsel (CFOC). 

Changes:

Part I - Section C - Additional aging categories: 1-30 Days, 31-60 Days, 61-90 Days, 91- 120

Days, 121-150 Days, 151-180 Days

Part II - Section A - Captures information on delinquent debts 120 Days or less 

Part II - Section B - Revised to capture information on debts greater than 120 

days delinquent that are eligible for referral to Treasury
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The Structure of the Report and Reporting Requirements

General The Receivables Report is governed by Volume I, TFM 2-4100. 

Those preparing it should be familiar with the provisions of that 

TFM chapter. The Receivables Report consists of three parts: 

Part I - Status of Receivables, Part II - Debt Management Tool and 

Technique Performance Data, and Part III - Footnotes. 

Agency programs are required to submit separate reports for direct 

loans, defaulted guaranteed loans, and administrative receivables 

(i.e. receivables generated from activities other than direct or 

defaulted guaranteed loans). Tax receivables are not reported in 

the Treasury Report on Receivables and Debt Collection 

Activities, nor are receivables owed by other Federal entities. 

The TROR only captures information on non-tax receivables 

owed by the public to the Federal government.

The form asks for data in two columns: 

(1) Number: The number should represent the actual number 

of receivables or debts. Examples: (1) if a debtor has 

several separate receivables or debts, each should be 

counted individually; or (2) if a receivable has numerous 

bills/invoices or is being paid in installments, each invoice 

or installment payment should not be counted individually; 

the underlying receivable is counted once. (Exceptions to 

this rule are Part 1 Section A Line 5 and Part 2 Section C in 

which the number represents the number of times or 

occurrences). 

(2) Amount: The dollar amount should represent the sum of 

the principal, interest and late charges associated with the 

receivables or debts. (Exception is Part 1 Section A line 2) 

Dollar amounts are reported in whole dollars. Amounts of 

49 cents or less should be rounded down to the nearest 

dollar and amounts of 50 to 99 cents should be rounded up 

to the next dollar. 
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Reporting Frequency Fiscal Service requires all Federal agencies to report quarterly. 

Generally reports are due to Fiscal Service by the end of the 

month following the close of each quarter. Generally all 4th 

quarter reports are due by November 15th.

The TROR Reporting Schedule is posted on the Fiscal Service 

Debt Management Government-wide Reports web page at 

https://fiscal.treasury.gov/fsservices/gov/debtColl/rsrcsTools/debt

_dmrpts_tror.htm 

Reporting Mechanism All reports are submitted to Fiscal Service via the Internet utilizing the 

Debt 

Management Information System (DMIS). 

Agency management is responsible for reporting. Any agency 

that fails to report may be footnoted as non-reporting in 

reports published and distributed to Congress and OMB for 

that quarter and in year-end reports. 

Certification/Verification The Chief Financial Officer (CFO) or its equivalent of each

agency must certify/verify all 4th quarter (year-end) reports.

All 4th quarter (year-end) reports must be certified by the 

submitting agency’s CFO or equivalent. Certification: This means 

that the delinquent debt amounts reported on the Receivables 

Report for cross-servicing and Treasury offset are correct and 

legally enforceable. 

Verification: This means that the agency has reconciled the 

Receivables Report to the agency’s Audited Financial 

Statements or, in its absence, to the Governmentwide Treasury 

Account Symbol Adjusted Trial- Balance System (GTAS). 

Agencies should also disclose the audit opinion of the Financial 

Statements or any issues regarding the pertinent accounts. 

Fiscal Service acknowledges that there will be differences among 

the balances reported since the Receivables Report presents the 

gross book value of receivables as opposed to the net present 

value presented on the Audited Financial Statements. 

Include in the TROR all receivables for programs that are 

administered by the agency. Receivables are reported with the 

program that first generated the receivables unless there was a 
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transfer by book entry to another entity. 
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Inquiries Questions concerning the certification/verification process should 

be directed to: 

Bureau of the Fiscal Service

Telephone Number: (202) 874-6810 

Fax Number: (202) 874-7292 

Only one certification/verification per agency is to be 

submitted. The certification/verification form is submitted 

separately from the Receivables Report itself. Verifications are 

due to Fiscal Service by December 15.

To receive access to the DMIS system to view your agency’s 

reports, contact Fiscal Service on (202) 874-6810 to receive a user 

ID. 
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Instructions

FORM IDENTIFICATION & PREPARER INFORMATION

The following pages provide comprehensive instructions on how to complete 

this form, including how to identify the reporting entity, the type of receivable, 

the preparer, and the supervisor.
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Instructions

Treasury Report on Receivables and Debt Collection Activities

Form Identification

Use the following instructions to complete the identification form: 

1. Know the Fiscal Year and Quarter for which you are 

preparing the report. 

2. Know the nine-digit Reporting Entity Code. This code 

identifies the entity for which the report is being prepared. 

It is unique for each reporting entity. You will need to 

preface the Reporting Entity Code by an alphabetic 

character to identify the type of receivable (please see line 3 

below). The first two digits of the reporting entity code 

identify the agency, the next two digits identify the bureau, 

and the remaining digits identify the entity. 

3. The Type of Receivable identifier tells whether the 

Receivables Report is being prepared for direct loans, 

defaulted guaranteed loans, or administrative receivables 

(i.e., receivables generated from activities other than direct 

or defaulted guaranteed loans).2 

2 For additional information, see the Statement of Federal Financial Accounting Standards No. 2, Accounting for

Direct Loans and Loan Guarantees. 

Reporting Entity Code: Fiscal Year: Quarter:

Type of Receivable: 
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Instructions

Preparer Information

Enter following information to complete the preparer information 

form: 

(1) The preparer's name 

(2) The preparer’s Telephone number 

(3) The preparer’s Facsimile number 

(4) The preparer’s E-mail address 

(5) The preparer’s supervisor's name 

(6) The preparer’s supervisor’s telephone number 

(7) The preparer’s supervisor’s E-mail address and 

(8) The preparer's street address. 
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Instructions

PART I - STATUS OF RECEIVABLES

Part I of the Receivables Report addresses the status of receivables. This 

section shows outstanding receivable balances, current fiscal year activities, 

aging and classification of delinquent debts, and classification of rescheduled 

debts.
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Instructions

PART I

SECTION A: RECEIVABLES AND COLLECTIONS
13

Instructions

General 

Section A - Receivables and Collections - shows 

the current beginning fiscal year balance of all receivables; and the 

cumulative activity during the fiscal year as of the end of the 

quarterly reporting period for new receivables, accruals, 

collections, adjustments, amounts written off, and the ending 

balance at the end of the reporting period. 

Information is reported at the entity level. It includes delinquent 

and non-delinquent receivables, as well as current (due within 12 

months from the quarter end date) and non-current (due beyond 12 

months from the quarter end date) receivables. Reminder: Dollar 

amounts reported are at gross book value.

By Line 

(1) Beginning FY Balance: The number and dollar amount of 

all receivables outstanding as of the beginning of the fiscal 

year. These figures are system generated and must 

agree with the ending balance reported for the previous 

fiscal year. Typically, these figures will remain unchanged 

throughout the fiscal year. 

(2) New Receivables: The number and dollar amount 

(principal only) of all new receivables generated 

during the current fiscal year. 

(3) Accruals: The dollar amount of earned interest and late 

charges accrued during the current fiscal year. 

(4) Collections on Receivables: The dollar amount of 

collections on all debts, including delinquent, nondelinquent, restored and written-off debts, during the fiscal 

year. Enter collections with a minus (-) sign before the 

figures. Footnote non-cash collections (for example, 

personal property or services rendered). The total dollar 

amount equals the sum of lines 4A through 4G of this 

section and is system generated. 
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Instructions

(A) At Agency: The dollar amount for both delinquent 

and non-delinquent debts worked and collected at the 

agency. 

(B) At Third Party: The dollar amount for both 

delinquent and non-delinquent debts collected by a third 

party other than the Department of Justice or private 

collection agency, such as a guaranty agency. 

(C) Asset Sales: The dollar amount of proceeds realized 

from the sale of a loan or debt. Do not include sales of 

secured property in this section. Include collections from 

sales of secured property in line 4E below. 

(D) Collections by Treasury through Offset and CrossServicing: The dollar amount of collections received 

through the Treasury Offset Program or Fiscal Service 

Cross-Servicing. Collections from Fiscal Service CrossServicing include collections through the Treasury Offset 

Program, Fiscal Services’ private collection agencies, 

administrative wage garnishments processed by Treasury 

and any other collections the creditor agency receives 

while a debt is at cross-servicing at Fiscal Service. 

(E) Collections by Sale After Foreclosure: The dollar 

amount of proceeds collected after the sale of secured 

property through foreclosure. 

(F) Collections by Department of Justice: The dollar 

amount of collections received by the Department of Justice 

from enforced collection action. 

(G) Other: The dollar amount of all other collections, for 

both delinquent and non-delinquent debts, not recorded in 

lines 4A through 4F of this section. Other collection tools 

or techniques include, but are not limited to, wage 

garnishment orders issued directly by the agency, private 

collection agencies (other than through Fiscal Service 

Cross-Servicing) and designated debt collection centers. 

Footnote amounts reported on this line to identify the 

method of collection. 
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Instructions

(5) Adjustments: The number and dollar amount of changes 

to receivables during the fiscal year due to reclassifications 

or adjustments, acquisition of property, estimated losses on 

acquired property, or consolidations. The total dollar 

amount of Adjustments equals the sum of lines 5A 

through 5E of this section and is system-generated. The 

number line will be positive. The number line represents 

the total number of times that adjustments were made 

during the current fiscal year. The amount line may be 

either negative or positive. Enter adjustments with a minus 

sign (-) before the figure if the dollar amount is negative. 

Line 5E is only a positive (+) value. 
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Instructions

(A) Reclassified/Adjusted Amounts: The dollar amount 

reclassified or adjusted and transferred into or out of 

receivables balances during the fiscal year. The amounts 

may include, but are not limited to, corrections to a 

previously reported receivable, refund of amounts 

previously reported as collections, adjustments made in a 

prior reporting period and estimated losses on collateralized 

debts. 

This line item may be either positive or negative. You 

must footnote all amounts reported on this line with the 

reason for the reclassification/adjustment.

(B) Adjustments Due to the Sale of Assets: The dollar 

amount of the difference between the gross book value of 

an asset and the proceeds from the sale of the asset as 

reported as a collection in line 4C of this section. 

(C) Consolidations: The dollar amount of proceeds 

received through loan consolidations. Loan consolidations 

include, but are not limited to, defaulted guaranteed loans 

that are closed and reestablished as direct loans. 

(D) Foreclosure Adjustments: The dollar amount of 

adjustments made as the result of a foreclosure on 

collateral. This section includes adjustments due to the 

acquisition of property serving as collateral on a direct or 

defaulted guaranteed loan. 

(E) Written-Off Debts Reinstated for Collection: The 

dollar amount of written-off debts the agency reinstated 

into total receivables in order to account for collections 

received. Since the debts are being reinstated, only enter 

positive (+) amounts for this line. The written-off debts 

could have previously been Currently Not Collectible 

(CNC) debts from Part II, Section D, line 1 that were 

written off in a previous quarter in line 6A of this section 

or debts that had been written off and closed out in line 6B 

of this section. 
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Instructions

(6) Amounts Written Off: The number and dollar amount of 

all uncollectible debts written off during the current fiscal 

year. Enter amounts written off with a minus (-) sign 

before the figures. The total dollar amount equals the sum 

of lines 6A and 6B of this section, and is system generated. 

Do not include estimated losses on collateralized debts. 

That figure is to be included on line 5A of this section. 

(A) Currently Not Collectible: The number and dollar 

amount of debts where collection action continues and the 

debt is not closed out. Generally, write off of debts to CNC 

is mandatory for debts more than 2 years delinquent, but 

can be done for debts less than 2 years delinquent if the 

agency determines that the debts have no value for 

accounting purposes. 

(B) Written Off and Closed Out: The number and dollar 

amount of debts for which all collection activity has been 

terminated. 

(7) Ending Balance: The number and dollar amount of 

receivables outstanding at the end of the reporting period. 

The dollar amount is equal to the sum of lines 1, 2, 3, 4, 5, 

and 6 of this section and is system generated. Lines 4 and 6 

are negative figures. Line 5 may be either a positive or 

negative figure. 
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Instructions

PART I

SECTION B: ADDITIONAL RECEIVABLES DATA-

 (INFORMATION ONLY) 
19

Instructions

General

Section B - Additional Receivables Data

(Information Only) - Captures subsets of total receivables 

information from Part I, Section A, line 7. The information 

captured includes receivables information at the end of the quarter 

classified as foreign sovereign, State and local government, 

rescheduled-delinquent and non-delinquent debts, and interest and 

late charges. The information in this section is for informational 

purposes only. 

By Line 

(1) Subsets of Ending Balance: Captures various categories 

of receivables information that are subsets of Part I, Section 

A, line 7. Each line of information in this section of the 

report is separate and is not totaled in this part of the report 

nor; does it necessarily add up to Part I, Section A, line 7. 

(A) Foreign/Sovereign Government: The number and 

dollar amount of receivables owed to the U.S. government 

by foreign sovereign nations. Do not include receivables 

owed by private foreign corporations or foreign 

individuals; those receivables should be classified as either 

commercial or consumer, as appropriate. 

(B) State and Local Government: The number and dollar 

amount of receivables owed to the U.S. government by 

State governments and local governments or governmental 

entities, including public schools, colleges and universities. 

(C) Rescheduled Debt - Delinquent: The number and 

dollar amount of rescheduled debts for which payments 

have not been received according to new or modified terms 

of an agreement to repay the debt. 

Note: The amount entered here should be the original 

amount of the delinquency, unless the terms of the 

repayment agreement do not provide for reinstating the 

total amount of the original debt. 
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Instructions

(D) Rescheduled Debt - Non-Delinquent: The number 

and dollar amount of rescheduled debt for which payments 

are being received according to new or modified terms of 

an agreement to repay the debt. 

(E) Interest & Late Charges: The dollar amount of 

interest and late charges associated with the total 

outstanding receivables due from the public, at the end of 

the reporting period, i.e., reported in Part I, Section A, line 

7, “Ending Balance.” This amount includes both the current 

and previous fiscal years’ interest and late charges. See 

Glossary for the definitions of interest and late charges. 

(F) A-129 Justification for CNC Exclusions: The number 

and dollar amount of debt that meets OMB criteria for 

exclusion from the CNC process. Information reported on 

this line must receive OMB approval prior to submission. 

For further information please refer to: 

http://www.whitehouse.gov/omb/circulars_default 
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Instructions

PART I

 SECTION C: DELINQUENT DEBT (EXCLUDING CNC DEBTS) 
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Instructions

General

Section C - Delinquent Debt (Excluding CNC

Debts) - contains an aging schedule and a separate schedule 

which classifies all delinquent debts by the Commercial, 

Consumer, Foreign Sovereign Government, and State and Local 

Government categories. The delinquent debts in this section do not 

include CNC debts that have been written off in the current year or 

in previous years. 

Information in this section also identifies delinquent debt 

submitted to credit bureau reporting agencies. 

The following criteria must be used when preparing this section: 

(A) A debt is delinquent if it has not been paid by the date 

specified in the agency’s initial written demand for payment 

or applicable agreement or instrument, unless other 

satisfactory payment arrangements have been made. If the 

contract or agreement provides for a “grace” period, then 

do not report the debt as delinquent, until that period 

expires without payment. In such cases, however, the date 

of delinquency is the original due date. 

(B) If a debtor is making payments according to the terms 

of a repayment plan approved by the agency, the debt is not 

considered to be delinquent. 

(C) Age delinquent debts from the date of delinquency. 

(D) Report each debt owed by a single debtor with 

multiple debts as a separate debt. 

(E) Report each delinquent debt once, even if your agency 

tracks delinquent payments on that debt separately. For 

example, if the debtor has missed two payments, and the 

agency keeps track of those delinquencies separately, for 

purposes of this section of the TROR, report them together 

as one debt. 

(F) If any installment is delinquent more than 180 days, 

report the debt as delinquent more than 180 days. Do not 

split the reporting between sections A and B. 
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Instructions

(G) Report the entire amount of each single debt as 

delinquent, if any part of it has been delinquent more than 

180 days, and the debt has been accelerated. 

By Line

(1) Delinquencies by Age: This line includes the number and 

dollar amount of debts reported on line 7 (Ending Balance) 

in Part I, Section A that are delinquent at the end of the

quarterly reporting period, grouped by the number of days 

the debt is past due at the end of the reporting period. 

Report debts with portions in different aging categories-- 

such as may occur when a debtor becomes delinquent on 

multiple installment payments--in the most delinquent

(oldest) category. The total dollar amount equals the sum 

of lines A through K of this line. The total dollar amount 

also equals the sum of line (2) of this section. The total 

number and dollar amount of delinquent debt is system

generated on line 1(L).

Lines (A) through (K) show the number and dollar amount 

of debts that are delinquent for the respective time periods 

(1-30 days; 31-60 days; 61-90 days; 91-120 days; 121- 150 

days; 151-180 days; 181-365 days; 1-2 years; 2-6 years; 6- 

10 years; and over 10 years). 

(2) Delinquencies by Category: This line includes the 

number and dollar amount of debts reported on line 7 

(Ending Balance) in Part I, Section A that are delinquent at 

the end of the quarterly reporting period, grouped by the 

category of debt. All delinquent debts should be placed 

into one of these categories. The total dollar amount equals 

the sum of lines A through D of this line. The total dollar 

amount also equals the sum of line (1) of this section. The 

total number and dollar amount of delinquent debts is 

system generated on line 2E. 

(A) Commercial: The number and dollar amount of 

delinquent commercial debts. Report debts as 

“commercial” if they were originated for a business 

activity, regardless of whether the debtor is an individual or 

business. See Glossary for examples of commercial debts. 
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Instructions

(B) Consumer: The number and dollar amount of 

delinquent consumer debts. Report debts as “consumer” 

debts if they were originated for a personal activity. See 

Glossary for examples of consumer debts. 

(C) Foreign/Sovereign Debt: The number and dollar 

amount of delinquent debts owed to the U.S. government 

by foreign sovereign nations. Do not include debts owed 

by private foreign corporations or foreign individuals. 

Report those debts either as commercial or consumer. 

(D) State and Local Government: The number and 

dollar amount of delinquent debts owed to the U.S. 

government by State and local governments or 

governmental entities, including public schools, colleges 

and universities. 

(E) Total Delinquencies by Category: The total number 

and dollar amount of delinquent debts. Total delinquencies 

are the total of lines 2A through 2D and are system 

generated. 

(3) Credit Bureau Reporting: This line includes the number 

and dollar amount of delinquent debts reported to Credit 

Bureau Agencies. All debts reported to Credit Bureau 

Reporting Agencies should be placed into one of these 

categories: 

(A) Consumer: Enter the total number and dollar value of 

consumer debt that has been reported to Credit Bureau 

reporting agencies. 

(B) Commercial: Enter the total number and dollar value 

of commercial debt that has been reported to Credit Bureau 

reporting agencies. 

(C) Total Credit Bureau Reporting: The total number 

and dollar amount of delinquent debts reported to 

Credit Bureau Agencies. The total on this line is the 

sum of lines 3A thru 3B, and is system generated.
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Instructions

PART II - DEBT MANAGEMENT TOOL AND TECHNIQUE 

PERFORMANCE DATA

Part II of the Receivables Report contains management information on the 

status of delinquent debt (including CNC debt) by collection management 

tools and techniques, age, eligibility for referrals, collections, and debt 

disposition.
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Instructions

PART II

 SECTION A: DELINQUENT DEBT 120 DAYS OR LESS 
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Instructions

General

Section A - Delinquent Debt 120 Days or Less

Captures delinquent debt information on the status of the debts and 

collection tools and techniques being used to collect delinquent 

debts that are 1-120 days delinquent: in bankruptcy, in forbearance 

or in formal appeals, in foreclosure, at a private collection agency, 

in litigation, in the process of internal offset, in wage garnishment, 

at Treasury for cross-servicing or offset and collected at the agency. 

This section is designed to provide specific information on the 

actions an agency is taking to collect its debts between 1 and 120 

days delinquent. 

Use the following criteria when preparing this section: 

(A) Categories are not necessarily mutually exclusive. 

For example, an agency may refer a debt to a private 

collection agency and to Treasury for offset at the same 

time. Report such a debt in both places.

(B) However, do not report debts at Fiscal Service or 

a Designated Debt Collection Center for crossservicing, at another third party, or at the 

Department of Justice for litigation in any other 

category, even though the entity working the debt 

may have referred it to a private collection agency or 

to Fiscal Service for offset.

By Line 

(1) Delinquencies 1 - 120 Days: The cumulative dollar 

amount of delinquent debts outstanding 120 days or less as 

of the end of the quarterly reporting period. The total for 

this section is line 1L. 

(A) In Bankruptcy: The number and dollar amount of 

delinquent collateralized or uncollateralized debts in 

bankruptcy. 

(B) In Forbearance or In Formal Appeals Process: The 

number and dollar amount of delinquent debts that the 

agency has placed in forbearance (i.e., agreed not to enforce 

collection for a period of time) and debts in a formal 
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Instructions

appeals process that precludes collection. This category 

only includes appeals programs that both determine the 

validity and legal enforceability of the debt and that require 

collection action to be suspended while the appeal is 

pending. If a debt is in an appeals process that does not 

require suspension of collection, that should not be reported 

in this line. Agencies should consult with their counsel if 

there is any question as to whether a debt may be collected 

while in a particular appeals process. 

(C) In Foreclosure: The number and dollar amount of 

delinquent debts which are in foreclosure. To be “in 

foreclosure,” the agency must have filed a notice of default. 

(D) At Private Collection Agencies: The number and 

dollar amount of delinquent debts currently at private 

collection agencies (PCAs) under contract with your 

agency. Do not include debts that are with PCAs as a part 

of Fiscal Services’ Cross-Servicing Program. These actions 

should be reported in “At Treasury for Cross-Servicing” on 

line 1H of this section. 

(E) In Litigation (At DOJ or Agency Counsel): The 

number and dollar amount of delinquent debts that the DOJ 

is litigating. If your agency has statutory authority to 

litigate, include debts that are being litigated by your 

agency in this line. Being litigated means that the agency’s 

attorneys have taken some action towards litigation. It does 

not include debts that are merely under review in the 

agency counsel’s office. 

(F) In the Process of Internal Offset: The number and 

dollar amount of delinquent debts that are in the process of 

being collected by internal agency offset. Internal offset 

occurs when an agency collects a delinquent debt by 

offsetting payments made or due to the delinquent debtor 

by that agency. 
29

Instructions

(G) In Wage Garnishment: The number and dollar 

amount of delinquent debts for which the agency has issued 

administrative wage garnishment orders. Do not include 

garnishment actions brought by DOJ or Fiscal Service; 

report these actions as “In Litigation (At DOJ or Agency 

Counsel)” on line 1E of this section or “At Treasury for 

Cross-Servicing” on line 1H of this section, respectively. 

Do not include Federal employee salary offset referrals on 

this line; Federal employee salary offsets are collected 

through the Treasury Offset Program. These referrals 

should be reported in line 1I of this section. 

(H) At Treasury for Cross-Servicing: The number and 

dollar amount of delinquent debts at the Department of the 

Treasury-Fiscal Service for cross-servicing. 

(I) At Treasury for Offset: The number and dollar 

amount of delinquent debts referred to the Department of 

the Treasury-Fiscal Service for collection through the 

Treasury Offset Program. 

(J) At Agency: The number and dollar amount of 

delinquent debts that are being worked at the agency. Debt 

being worked at the agency includes, but is not limited to, 

in counsel, or pending referral to DOJ for litigation. 

(K) Other: The number and dollar amount of delinquent 

debts that are being worked by management tools or 

techniques not represented in lines 1A through 1J of this 

section. Other tools and techniques include, but are not 

limited to, debts at third parties - such as a guaranty agency 

or financial institution, and debts at a designated debt 

collection center. All amounts reported on this line are 

to be footnoted to identify the tool or technique utilized.
30

Instructions

(L) Total Delinquencies 1 - 120 Days: The number and 

dollar amount of “Total Delinquencies 1 - 120 Days” is 

system generated and will equal the sum of Part I, Section 

C, lines 1A thru 1D. Because the categories are not 

mutually exclusive, the sum of lines 1A thru 1K of this 

section may not equal the total on line 1L, Total 

Delinquencies 1-120 Days.
31

Instructions

PART II

SECTION B: DELINQUENT ELIGIBLE FOR REFERRAL 

TO TREASURY
32

Instructions
33

Instructions

General

Section B - Delinquent Debt Eligible for Referral to

Treasury - Captures delinquent debt information according to eligibility 

for referral to Treasury for offset and cross-servicing. Debts that are not 

legally enforceable are ineligible for referral to Treasury for offset and crossservicing. Ineligible debts include, but are not limited to the following debt 

states: bankruptcy, forbearance, formal appeals, and foreclosure. 

Treasury Offset Program (TOP) - The Digital Accountability and 

Transparency Act (DATA Act) was signed into law on May 9, 2014. It 

requires (1) Federal agencies to refer to the Treasury Offset Program (TOP) 

legally enforceable non-tax debts that are greater than 120 days delinquent;

(2) the Secretary of the Treasury to report to Congress “any instance" in 

which agencies fail to meet the new referral requirement.

In addition to the ineligible reasons, there are exceptions to the statutory 

requirement to refer debts to Treasury for offset once it is greater than 120 

days delinquent. The exceptions include: debts owed by foreign sovereign 

nations, and debts in litigation for enforced collection. This information is 

requested to assist in identifying the actions agencies are taking to collect 

seriously delinquent debt, relative to compliance with the requirements of 

the DATA Act. 

Cross-Servicing - The Debt Collection Improvement Act (DCIA) of 1996 

requires Federal agencies to refer to the Treasury Cross-Servicing Program 

legally enforceable non-tax debts that are greater than 180 days delinquent. 

In addition to the ineligible reasons, there are several exceptions to the 

statutory requirement to refer debts to Treasury for cross-servicing once it is 

greater than 180 days delinquent. The exceptions include debts that are: 

owed by foreign sovereign nations; in litigation for enforced collection; at 

private collection agencies; in the process of internal offset; exempted by 

Treasury from cross-servicing; and returned from cross-servicing as 

uncollectible. 

This information is requested to assist in identifying the actions agencies are 

taking to collect seriously delinquent debt, relative to compliance with the 

requirements of the DCIA. 

The “Other” category (lines 1G, 1L, 2G and 2P) is to be used for unique 

exclusion from both Treasury offset and Treasury cross-servicing. It should 

only be used when the debt cannot be accurately placed in one of the 

given categories. 
34

Instructions

By Line

1) Debt Eligible for Referral to Treasury for Collection (Treasury 

Offset Program)

(A) Debt Over 120 Days Delinquent Eligible for Referral to 

Treasury for Offset as Required by DATA Act: The amount of 

debts that are over 120 days delinquent. The number and dollar 

amount on this line equals the sum of lines 1E through 1K of Part I, 

Section C and is system generated. 

(B) Currently Not Collectible Debt: The amount of debt that has 

been written off and categorized as “Currently Not Collectible”, but 

has not been closed out by the agency. The number and dollar 

amount on this line should equal the total reported in Part II, Section 

D, line 1E. 

(C) Total Delinquent Debt Over 120 Days and CNC Debts: The 

number and dollar amount is the sum of lines 1A and 1B of this 

section and is system generated. 

Debts Ineligible for Treasury Offset Program (TOP) Debts 

reported on lines D through G are ineligible for TOP. 

(D) In Bankruptcy: The number and dollar amount of delinquent 

collateralized or uncollateralized debts in bankruptcy. Enter the 

number and dollar amount with a minus (-) sign before the figures. 

(E) In Forbearance or Formal Appeals Process (including 

Litigation): The number and dollar amount of delinquent debts that 

are deferred because of a formal forbearance program or appeals 

process. Include debts here if the results of an appeal will determine 

whether a debt is considered valid and legally enforceable and/or the 

dollar amount to be collected. Enter the number and dollar 

amount with a minus (-) sign before the figures.

*If the debt is no longer in a forbearance program or formal appeals 

process and is currently in litigation for enforced collection, it may 

be reported in line 1K of this section. 
35

Instructions

(F) In Foreclosure: The number and dollar amount of delinquent 

collateralized debts in foreclosure. For a debt to be “in foreclosure”, 

the agency must have filed a notice of default. Enter the number 

and dollar amount with a minus (-) sign before the figures.

If an ongoing foreclosure proceeding is taking place, the debt should 

be classified as “In Foreclosure.” 

(G) Other: The number and dollar amount of delinquent debts that 

are ineligible for referral to Treasury for reasons other than those 

listed in lines 1D through 1F of this section. Amounts entered on 

this line must be footnoted with the reason the debt is ineligible. 

The number and dollar amount may be positive or negative. When 

entering negative amounts, use a minus (-) sign before the 

figures.

(H) Balance of Debt Eligible for Referral to Treasury for Offset: 

The number and dollar amount on this line is the sum of lines 1C 

through 1G and is system generated. The system will transfer data 

from this line to line 1I of this section. 

Exceptions from Referral to Treasury for Offset

Debts reported on lines J through L are exceptions from referral to 

the Treasury Offset Program (TOP). 

(I) Debt Eligible for Referral to Treasury for Offset (from 1H) 

The number and dollar amount of debts that are over 120 days 

delinquent, and are otherwise eligible for offset. The amounts on 

this line equal the number and dollar amount from line 1H and are 

system generated. 

(J) Foreign/Sovereign Debt: The number and dollar amount of 

delinquent debts owed to the U.S. government by foreign sovereign 

nations. Do not include debts owed by private foreign 

corporations or foreign individuals; agencies should classify those 

debts as either commercial or consumer debts. Enter the number 

and dollar amount with a minus (-) sign before the figures.
36

Instructions

(K) Debt in Litigation for Enforced Collection: The number and 

dollar amount of delinquent debts over 120 days that have been 

referred for litigation and are in the process of enforced collection; 

this may include DOJ referrals or internal referrals at agencies with 

the statutory authority to litigate. This does not include debts that 

are merely under review in the agency counsel’s office. Enter the 

number and dollar amount with a minus (-) sign before the figures. 

*If the debt is in a forbearance program or formal appeals process, it 

should be reported in line 1E of this section. 

Note on Debts in Litigation at the Agency: If a debt is not being 

handled by DOJ, it can still be considered “In Litigation” if an actual 

court proceeding has been commenced by the agency. 

Note on Estate debt: If the agency is proceeding against the estate 

of a deceased debtor, it should be categorized as “Debt in Litigation 

for Enforced Collection”. 

(L) Other: The number and dollar amount of delinquent debts that 

are exceptions from mandatory referral to the Treasury Offset 

Program for reasons other than those listed in lines 1J and 1K of this 

section. Agencies must footnote amounts entered on this line with 

the reason debts are an exception from referral to TOP. The number 

and dollar amount may be positive or negative. Enter negative 

amounts with a minus (-) sign before the figures.

(M) Debt Required to be Referred to the Treasury Offset 

Program by Agency: The number and dollar amount of delinquent 

debts over 120 days that are eligible and required to be referred to 

Treasury for offset. The number and dollar amount on this line is 

the sum of lines 1I through 1L of this section and is system 

generated. 

(N) Debt Referred Directly to Treasury Offset Program by 

Agency: Of the amount required to be referred, the number and 

dollar amount of delinquent debts over 120 days that have been 

referred directly to the Treasury Offset Program by the agency and 

are currently eligible for collection. Enter the number and dollar 

amount with a minus (-) sign before the figures.

(O) Debt Referred to Treasury Offset Program through CrossServicing: Of the amount required to be referred, the number and 

dollar amount of delinquent debts over 120 days that have been 

referred directly to the Treasury Cross-Servicing Program by the 

agency, and subsequently submitted to TOP for offset by CrossServicing. Enter the number and dollar amount with a minus (-) 

sign before the figures.
37

Instructions

(P) Balance Remaining to be Referred to Treasury for Offset: 

The number and dollar amount of eligible delinquent debts over 120 

days that have not been referred to the Treasury Offset Program as 

required by the DATA Act. 

Please provide an explanation in the footnote section why any 

remaining eligible debts are not referred to Treasury or a Debt 

Collection Center for offset. The number and dollar amounts on this 

line are the sum of lines 1M through 1O of this section and are 

system generated. 

2) Debt Eligible for Referral to Treasury for Collection (CrossServicing)

(A) Debt Over 180 Days Delinquent Eligible for Referral to 

Treasury for Cross- Servicing as Required by DCIA: The 

amount of debts that are over 180 days delinquent. The number and 

dollar amount on this line equals the sum of lines 1G through 1K of 

Part I, Section C and is system generated. 

(B) Currently Not Collectible Debt: The amount of debt that has 

been written off and categorized as “Currently Not Collectible”, but 

has not been closed out by the agency. The number and dollar 

amount on this line should equal the total reported in Part II, Section 

D, line 1E. 

(C) Total Delinquent Debt Over 180 Days and CNC Debts: The 

number and dollar amount is the sum of lines 2A and 2B of this 

section and is system generated. 

Debts Ineligible for Treasury Cross-Servicing

Debts reported in lines D through G are ineligible for CrossServicing. 

(D) In Bankruptcy: The number and dollar amount of delinquent 

collateralized and uncollateralized debts in bankruptcy. Enter the 

number and dollar amount with a minus (-) sign before the figures. 

(E) In Forbearance or Formal Appeals Process (including 

Litigation): The number and dollar amount of delinquent debts that 

are deferred because of a formal forbearance program or appeals 

process. Include debts here if the results of an appeal will determine 

whether a debt is considered valid and legally enforceable and/or the 

dollar amount to be 

collected. Enter the number and dollar amount with a minus (-) 

sign before the figures.
38

Instructions

*If the debt is no longer in a forbearance program or formal appeals 

process and is currently in litigation for enforced collection, it may 

be reported in line 2K of this section. 

(F) In Foreclosure: The number and dollar amount of delinquent 

collateralized debts in foreclosure. For a debt to be “in foreclosure”, 

the agency must have filed a notice of default. Enter the number 

and dollar amount with a minus (-) sign before the figures.

*If an ongoing foreclosure proceeding is taking place, the debt 

should be classified as “In Foreclosure”. 

(G) Other: The number and dollar amount of delinquent debts that 

are ineligible for referral to Treasury for reasons other than those 

listed in lines 2D through 2F of this section. Amounts entered on 

this line must be footnoted with the reason the debt is ineligible. 

The number and dollar amount may be positive or negative. When 

entering negative amounts, use a minus (-) sign before the 

figures.

(H) Balance of Debt Eligible for Referral to Treasury for CrossServicing: The number and dollar amount on this line is the sum of 

lines 2C through 2G and is system generated. The system will 

transfer data from this line to line 2I of this section. 

Exceptions from Referral to Treasury for Cross-Servicing 

Debts reported on lines J through P are exceptions from referral to 

the Treasury Cross-Servicing Program (TOP). 

(I) Debt Eligible for Referral to Treasury for Cross-Servicing 

(from 2H): The number and dollar amount of debts that are over 

180 days delinquent, and are otherwise eligible for offset. The 

amounts on this line equal the number and 

dollar amount on line 2H of this section and are system generated. 

(J) Foreign/Sovereign Debt: The number and dollar amount of 

delinquent debts owed to the U.S. government by foreign sovereign 

nations. Do not include debts owed by private foreign 

corporations or foreign individuals; agencies should classify those 

debts as either commercial or consumer debts. Enter the number 

and dollar amount with a minus (-) sign before the figures.

(K) Debt in Litigation for Enforced Collection: The number and 

dollar amount of delinquent debts over 180 days that have been 

referred for litigation and are in the process of enforced collection; 

this may include DOJ referrals or internal referrals at agencies with 

statutory authority to litigate. This does not include debts that are 

merely under review in the agency counsel’s office. Enter the 

number and dollar amount with a minus (-) sign before the figures. 
39

Instructions

*If the debt is in a forbearance program or formal appeals process, it 

should be reported in line 1E of this section. 

Note on Debts in Litigation at the Agency: If a debt is not being 

handled by DOJ, it can still be considered “In Litigation” if an actual 

court proceeding has been commenced by the agency. 

Note on Estate debt: If the agency is proceeding against the estate 

of a deceased debtor, it should be categorized as “Debt in Litigation 

for Enforced Collection”. 

(L) At Private Collection Agencies: The number and dollar 

amount of delinquent debts currently at private collection agencies 

(PCAs) under contract with your agency. Do not include debts that 

are with PCAs as a part of Treasury’s Cross-Servicing Program. 

(M) In the Process of Internal Offset: The number and dollar 

amount of delinquent debt that the agency is currently collecting 

through a formal internal offset program. A debt is being collected 

by internal offset if a creditor agency expects the debt to be 

collected in full within three (3) years from the date of delinquency 

by withholding funds payable by the creditor agency to the debtor 

to satisfy the debt. Enter the number and dollar amount with a 

minus (-) sign before the figures. 

(N) Debt Exempted by Treasury from Cross-Servicing: The 

number and dollar amount of delinquent debts that the Secretary of 

the Treasury has formally exempted from cross-servicing. Enter the 

number and dollar amount with a minus (-) sign before the figures. 

(O) Debt Returned from Cross-Servicing: The number and dollar 

amount of delinquent debts returned from cross-servicing as 

uncollectible. Enter the number and dollar amount with a minus (-) 

sign before the figures. 

(P) Other: The number and dollar amount of delinquent debts that 

are exceptions from mandatory referral to Treasury or a Designated 

Debt Collection Center for cross-servicing for reasons other than 

those listed in lines 2J through 2P of this section. Agencies must 

footnote amounts entered on this line with the reason debts are an 

exception from referral. The number and dollar amount may be 

positive or negative. Enter negative amounts with a minus (-) sign 

before the figures. 
40

Instructions

Note on Debts Scheduled for Sale: The DCIA exempts debts from 

cross-servicing debts that will be disposed of under an asset sales 

program within one year of becoming eligible for sale, or later than 

one year if consistent with an asset sales program and a schedule 

established by the agency and approved by the Director of the Office 

of Management and Budget. Report this on the “Other” line. 

(Q) Debt Required to be Referred to Treasury or a Designated 

Debt Collection Center for Cross-Servicing:

The number and dollar amount of delinquent debts over 180 days 

that are eligible and required to be referred to Treasury for crossservicing. The number and dollar amount on this line is the sum of 

lines 2I through 2P of this section and is system generated. 

(R) Debt Referred to Treasury or a Designated Debt Collection 

Center for Cross-Servicing: Of the amount required to be referred, 

the number and dollar amount of delinquent debts over 180 days that 

have been referred directly to the Treasury Cross-Servicing Program 

by the agency and are currently eligible for collection. Enter number 

and dollar amount with a minus (-) sign before the figures. 

(S) Balance Remaining to be Referred: The number and dollar 

amount of eligible delinquent debts over 180 days that have not been 

referred to Treasury or a Designated Debt Collection Center for 

cross-servicing as required by the DCIA. Please provide an 

explanation in the footnote section why any remaining eligible debts 

are not referred to Treasury or a Designated Debt Collection Center 

for cross-servicing. The number and dollar amount on this line 

equals 2Q minus 2R of this section and is system generated. 
41

Instructions

General

PART II

 SECTION C: COLLECTIONS ON DELINQUENT DEBT 
42

Instructions

General

Section C - Collections on Delinquent Debt - 

Captures information on all collections of delinquent accounts by 

management tool and technique. Collections are not always 

mutually exclusive. The number and dollar amount of collections 

are recorded for each tool or technique that is used to collect funds. 

The purpose for requesting this information is to assist agencies in 

assessing the effectiveness of their current debt collection 

strategies. This information allows agencies to compare the 

number of cases and dollar amounts collected from each tool to the 

number and dollar amount of debts applied to each tool. 

The following criteria must be used when preparing this section: 

Categories are not always mutually exclusive. An agency 

may collect a debt from a private collection agency and 

from the Treasury Offset Program at the same time. The 

collections should be reported in both places. 

However, collections by Treasury’s Cross-Servicing 

Program or a designated debt collection center, third party, 

or the Department of Justice (by litigation) will not be 

reported in any other category, even though the entity 

working the debt may have received funds from a private 

collection agency or from the Treasury Offset Program. 

The actual number of times collections were received is to 

be reported. Do not count the number of debts, but the 

number of times a collection tool or technique was used to 

make collections. If collections were made for the same 

debt by more than one tool or technique, report each time 

the collection tool or technique was used and the dollar 

amount that each generated. 
43

Instructions

By Line

(1) Collections on Delinquent Debt: The cumulative dollar 

amount of collections on delinquent debts (including CNC 

debts) for the current fiscal year is reported in this section. 

Include collections of delinquent debts that were written off 

and subsequently restored during the fiscal year. 

Collections on delinquent debts will be itemized in the 

following categories: 

(A) By Private Collection Agencies: The number and 

dollar amount of delinquent debt collected by private 

collection agencies under contract with the agency. Do not 

include collections by private collection agencies under 

contract with Fiscal Service or a Designated Debt 

Collection Center-- report these collections in line 1G of 

this section. 

(B) By Litigation: The number and dollar amount of 

delinquent debt collected through litigation. Include 

judicial foreclosure, bankruptcy, cash and non-monetary 

settlements. 

(C) By Internal Offset: The number and dollar amount of 

delinquent debt collected through a formal internal offset 

program. 

(D) By Third Party: The number and dollar amount of 

delinquent debt collected by a third party, other than DOJ or 

a private collection agency, such as a guaranty agency. 

(E) By Asset Sales: The number and dollar amount of 

proceeds realized from the sale of delinquent loans or debt. 

This does not include liquidation of collateral. 

(F) By Wage Garnishment: The number and dollar 

amount of delinquent debt collected from garnishment of 

non-Federal wages. 
44

Instructions

Do not include Federal employee salary offsets collections 

on this line; Federal employee salary offsets are collected 

through the TOP. These collections should be reported in 

line 1H of this section. 

(G) By Treasury/Designated Debt Collection Center 

Cross-Servicing: The number and dollar amount of 

delinquent debt collected by Fiscal Service or other 

Designated Debt Collection Center Cross-Servicing 

Programs. Report total collections received through 

cross-servicing, regardless of the collection tool utilized. 

(H) By Treasury Offset: The number and dollar amount 

of delinquent debt collected through the Treasury Offset 

Program for those debts referred directly to TOP by the 

agency. 

(I) By Agency: The number and dollar amount of 

delinquent debt worked and collected at the agency. 

(J) Other: The number and dollar amount of delinquent 

debt collected by management tools or techniques not 

represented in lines 1A through 1I of this section. Footnote 

all amounts reported on this line to identify the collection 

method used. 

(K) Total Collections on Delinquent Debt: The 

cumulative number of collections and dollar amount of 

“Total Collections on Delinquent Debt” on this line equals 

the sum of lines 1A through 1J of this section and is system 

generated. 
45

Instructions

PART II

 SECTION D: CNC DEBT STATUS 
46

Instructions

General

Section D - CNC Debt Status - Captures information on 

the number and dollar amount of selected categories of Currently 

Not Collectible (CNC) delinquent debt. The purpose of this 

section is to collect information on the status of CNC debts and to 

identify the collection tools that agencies are using to collect such 

debts. Section D also captures information on the final close-out 

of CNC debts. 

By Line 

(1) Currently Not Collectible Debts (Written Off and Not 

Closed Out): The number and dollar amount of debt that 

has been written off but not closed out. The number and 

dollar amount for line 1E of this section shall be a 

cumulative number, representing all written-off debt from 

the current and preceding fiscal years which the agency is 

continuing to pursue collection action. Debts reported in 

this section can be reported in more than one line, except 

debts that have been referred to Treasury or a Designated 

Debt Collection Center for cross-servicing. 

(A) At Private Collection Agencies: The number and 

dollar amount of CNC debts that are still being pursued for 

collection by a private collection agency. 

(B) At Treasury or a Designated Debt Collection Center 

for Cross-Servicing: The number and dollar amount of 

CNC debt being pursued by Treasury or a Designated Debt 

Collection Center for cross-servicing. Do not report debts 

referred to cross-servicing in lines 1A, 1C and 1D of this 

section. 

(C) At Treasury for Offset: The number and dollar 

amount of CNC debt referred to the Treasury Offset 

Program. 
47

Instructions

(D) Other: The number and dollar amount of CNC debts 

that have been written off and not included in lines 1A 

through 1C of this section. Amounts reported on this 

line should be footnoted to explain why they were not 

reported on lines 1A through 1C and what type of 

collection action the agency is taking.

(E) Total-Currently Not Collectible Debts: The total 

number and dollar amount of CNC debts, from both the 

current year and previous fiscal years, which have not been 

closed out. The agency manually enters this line--the 

total is not system generated. The amount of this line 

may be different than the sum of lines 1A-1D of this 

section, because the debts may be reported in more than 

one line of this section. The number and dollar amount 

of this line should not be greater than the total of lines 

1A-1D of this section.

(2) CNC Debts Closed Out During the Current FY: The 

cumulative number and dollar amount of CNC debt for 

which collection action has been terminated. These debts 

have been removed from the CNC category and closed out 

during the current fiscal year. 
48

Instructions

PART II

 SECTION E: DISPOSITION OF CLOSED-OUT DEBTS 
49

Instructions

General

Section E - Disposition of Closed-Out Debts - 

Captures information on the number and dollar amount of closedout delinquent debts. Section E captures information on the final 

close out of delinquent debt and reporting of debts to IRS as 

potential income on IRS Form 1099-C (Cancellation of Debt), 

once the agency determines that no further collection action will 

be taken. Section E also collects information on debts closed out 

during the previous calendar year where the debt was not reported 

to the IRS. This section reports on the close out of all delinquent 

debts, including debt that may have been previously classified as 

CNC. 

By Line 

(1) Debts Closed Out During Previous CY: The cumulative 

number and dollar amount of all debts (both CNC and 

Non-CNC debt) for which the agency terminated 

collection action and that were closed out in the previous 

calendar year. 

(A) Reported to IRS on Form 1099-C: The number and 

dollar amount of debts that the agency reported to the IRS 

on IRS Form 1099-C as potential income to a debtor or 

debtors during the most recent tax year (previous 

calendar year). 

Debts reported on this line have been written off and 

closed out and all collection actions have ceased. 

Important IRS Form1099-C reporting is based on the previous 

calendar year, but occurs in the 2nd quarter of the current 

fiscal year (typically February). For example, if an agency 

terminates all collection efforts and closes out a debt in 

June 2009, the debt would be reported to the IRS in 

February 2010, and on the TROR FY 2010 2nd quarter 

report. 
50

Instructions

(B) Not Reported Eligible for 1099-C but not required 

(Less than $600) (-): The cumulative number and dollar 

amount of debts that were closed-out during the previous 

calendar year, but were not reported to the IRS on Form 

1099-C because of the dollar value being less than the IRS 

requirement for reporting. 

(C) Not Reported to IRS on 1099-C (must footnote): 

The cumulative number and dollar amount of debts that 

were closed out during the previous calendar year, in 

which collection actions have ceased, but were not 

reported to the IRS on form 1099-C. 

Explain in the footnote section why these debts are not 

reported to the IRS. The number and dollar amount 

on this line are system generated
51

Instructions

PART III 

FOOTNOTES

When footnotes are either required in the instructions or necessary for 

clarification, prepare and submit them via the DMIS Internet-based 

application along with Parts I and II of the TROR. Footnotes are required 

whenever agencies’ criterion is inconsistent with Treasury’s definition of data 

requirements. Footnotes are required to explain agency exceptions to the 

TROR data requirements. Enter footnotes in the designated area and 

reference them to the appropriate line item.
52

GLOSSARY

Administrative Receivable: Any receivable other than a direct loan or a defaulted 

guaranteed loan, such as, but not limited to: fines, penalties, 

sales of goods and services, overpayments of salaries and 

benefits, and travel advances. For the purposes of this 

report, tax receivables are not included in this definition 

and not reported on the Receivables Report. 

Administrative Wage A process whereby a Federal agency issues a wage 

Garnishment: garnishment order to a delinquent debtor’s non-Federal 

employer. No court order is required. The employer 

withholds amounts from the employee’s wages in 

compliance with the order and pays those amounts to the 

Federal agency that issued the order. 

Agency Counsel: An attorney within a government organization authorized to 

handle its legal matters. 

Appeal: An administrative or judicial proceeding in which the 

debtor resorts to a higher authority for the purpose of 

obtaining a review and reversal of the determination that 

the debtor owes all or part of the debt or that the particular 

debt collection is authorized or appropriate. 

Bankruptcy: A legal procedure established under one of the chapters of 

title 11 of the United States Code (Bankruptcy Code) 

whereby a debtor may seek relief from the claims of a 

creditor. 

Bureau of the Fiscal Service The Bureau of the Fiscal Service (Fiscal Service) was 

established on October 7, 2012, with the consolidation of two 

Treasury Department bureaus: the Bureau of the Public Debt 

(BPD) and the Financial Management Service (FMS).

Centralized Offset: Is the offset of Federal payments through the Treasury 

Offset Program (TOP). 

Close-out: A category of written-off debt. An event that occurs 

concurrently with, or subsequent to, an agency decision to 

write off a debt for which the agency has determined that 

future additional collection attempts would be futile. At 

close-out, an agency may be required to report to the IRS 

the amount of the closed-out debt as potential income to the 

debtor on IRS Form 1099-C, in accordance with IRS 

requirements. No additional collection action may be taken 
53

GLOSSARY

by the agency after issuing the IRS Form 1099-C. 

Collateral: Any property pledged as security for a loan. 

Commercial: Relating to a business activity, regardless of whether that 

activity has been undertaken by an individual or business 

(for example, a loan to a farmer to purchase additional land 

for farming; a loan for multi-family housing; a fine against 

a business or an organization; or assessment against a 

business/corporation). 

Consumer: Relating to a personal activity (for example, a loan made to 

an individual to purchase a residence; a loan made to an 

individual to attend an educational institution; a travel 

advance; or assessment against an individual). 

Cross-Servicing: Collections of debt by one agency on behalf of another 

agency in accordance with 31 U.S.C. 3711 (g). 

Currently Not Collectible: A category of debt that has been written off on the agency’s 

financial statements. If, after a debt is written off, an 

agency determines that cost effective collection efforts 

should continue, then the debt should be classified as 

Currently Not Collectible (CNC). All available and 

appropriate collection tools should be used until the agency 

decides to terminate collection action. 

Debt: For the purposes of this document, a debt has the meaning 

set forth in 31 U.S.C. § 3701 (b) (1) and means any amount 

of funds or property that has been determined by an 

appropriate official of the Federal Government to be due to 

the United States by a person, organization, or entity other 

than another Federal agency, and which the Federal 

Government is entitled to receive immediately. The 

definition of debt does not include tax debts. 

Debt Collection: The effort to recover amounts due after the debtor fails to 

make the payment. This activity includes the assessment of 

the debtor’s ability to pay, the exploration of a possible 

alternative arrangement to increase the debtor’s ability to 

pay, and other efforts to secure payment. 
54

GLOSSARY

Debt Management Information: 

System (DMIS):

The Fiscal Service Internet-based application used by 

Federal agencies to report the Treasury Report on 

Receivables and Debt Collection Activities. 

Defaulted Guaranteed Loan: A receivable created when the Government acquires a 

guaranteed or insured loan in satisfaction of a default or for 

other reasons. 

Deficiency: The portion of a loan which remains outstanding after 

collateral property has been liquidated (converted to cash) 

and applied to the outstanding balance. 

Delinquency Date: The payment due date as set forth in an agreement or other 

instrument, or the date specified in the agency’s initial 

written demand for payment or applicable agreement or 

instrument. 

Delinquent: A debt is delinquent if it has not been paid by the date 

specified in the agency’s initial written demand for payment 

or applicable agreement or instrument, unless other 

satisfactory payment arrangements have been made. If the 

contract or agreement provides for a “grace” period, then 

do not report the debt as delinquent, until that period 

expires without payment. In such cases, however, the date 

of delinquency is the original due date. 

Delinquent debts are aged from the date of delinquency. 

If a debtor is making payments according to the terms of a 

repayment plan approved by the agency, the debt is not 

considered to be delinquent. 

On the TROR, report each debt owed by a single debtor 

with multiple debts as a separate debt. 

On the TROR, report each delinquent debt once, even if 

your agency tracks delinquent payments on that debt 

separately. For example, if the debtor has missed two 

payments, and the agency keeps track of those 

delinquencies separately, report them together as one debt. 
55

GLOSSARY

If any installment is delinquent more than 180 days, report 

the debt on the TROR as delinquent more than 180 days. 

Agencies should report the entire amount of each single 

debt as delinquent, if any part of it has been delinquent 

more than 180 days, and the debt has been accelerated. 

Direct Loan: A receivable created when the Government disburses funds 

and contracts with the debtor for repayment, with or 

without interest. 

Forbearance: An intentional delay in collecting or enforcing a debt, 

usually for a specific period of time. Forbearance is often 

consideration for a promise by the debtor to pay an added 

amount. 

Foreclosure: A legal proceeding to terminate a mortgagor's interest in 

property, instituted by the creditor (the debtor’s) either to 

gain title or to force a sale in order to satisfy the unpaid 

debt secured by the property. 

Gross Book Value: The gross amount at which the receivable asset appears on 

the books of account. The gross book value is the amount 

appearing in a receivable account prior to applying the 

applicable valuation allowances for doubtful accounts. 

Interest: The charge assessed as a cost of extending credit in 

accordance with a contractual agreement, legislation or 

regulation. 

IRS Form 1099-C /

Cancellation of Debt:

A form used by a creditor to report to the Internal Revenue 

Service a discharge of indebtedness. 

Late Charges: The amounts accrued and assessed on a delinquent debt. 

Late charges include the following: 

Administrative costs: Costs incurred in processing and handling a delinquent 

debt. Costs should be based on actual costs incurred or cost 

analyses which estimate the average of actual additional 

costs incurred for particular types of debt at similar stages 
56

GLOSSARY

of delinquency. Administrative costs should be accrued and 

assessed from the date of delinquency. 

Penalties: A punitive charge assessed for delinquent debts. Unless 

provided otherwise by statute, the rate to be assessed is set 

by law at no more than 6% per year and is assessed on the 

portion of a debt remaining delinquent more than 90 days, 

although the charge will accrue and be assessed from the 

date of delinquency. Penalties should be assessed unless 

otherwise provided in legislation or a contractual 

agreement. 

Late payment interest: The charge assessed on delinquent debts based on the time 

value of money owed and not paid when due. As 

established by the Debt Collection Act of 1982, the 

minimum annual rate to be assessed is the Department of 

the Treasury's Current Value of Funds Rate. A higher rate 

may be used if judged by the agency as necessary to protect 

the Government's interests. Late payment interest is 

accrued and assessed from the date of delinquency, and 

should be assessed unless interest is otherwise provided in 

legislation or a contractual agreement. Additionally, late 

payment interest may be waived by the agency at any time 

(must then be written off) or it may accrue indefinitely. 

Litigation: A legal action or process taken in a court of competent 

jurisdiction for full or partial debt recovery. 

Net Present Value: Current worth of dollars of an investment’s future cash 

flow. 

Offset: Withholding funds payable by the U.S. government to, or 

held by the Government for, a person or entity to satisfy a 

debt that the person or entity owes the U.S. government. 

Present Value: The value now of a future sum or sums discounted, 

assuming compound interest. 

Principal: The amount owed by the debtor to the U.S. government, 

excluding interest, penalties, administrative costs, fees, and 

prepaid charges. 
57

GLOSSARY

Private Collection Agency: A private-sector entity whose primary business is the 

collection of delinquent debts. 

Receivable: For the purposes of this document, a receivable means any 

amount of funds or property that has been determined by 

an appropriate official of the U.S. government to be owed 

to the United States by a person, organization, or entity 

other than another Federal agency. The definition of a 

receivable does not include tax receivables. 

Rescheduled: Modifying terms and conditions to facilitate repayment of a 

debt, which includes establishing new terms as a result of 

changes in authorizing legislation. Rescheduling is also 

called restructuring, refinancing, and reamortizing. 

Rescheduled debts are not considered delinquent unless the 

debtor fails to pay under the rescheduled terms. 

Salary Offset: The process of collecting a delinquent Federal non-tax debt 

from a Federal employee’s current pay. 

Treasury Offset Program (TOP): A process that allows agencies to submit delinquent debts 

to one centralized location, the Fiscal Service, for 

collection through the offset of all eligible Federal 

payments. 

Wage Garnishment: The process of withholding amounts from a debtor’s nonFederal disposable pay to collect a delinquent debt. 

Write-Off: An accounting action that results in reporting the 

debt/receivable as having no value on the agency’s financial 

and management reports. The agency may need DOJ 

approval to write off a debt since the agency is adjusting its 

accounting records. 

The written-off amount is removed from an entity's 

receivables; however, collection attempts should continue 

until the agency decides to close out the debt.